The Flower Industry

The flower industry is highly fragmented. It is divided in five main businesses. 
•	Producers
•	Importers
•	Wholesalers/Distributors
•	Bouquet Makers
•	Retailers

Production.

The first step in the chain of distribution are the producers. This is a capital intensive, low volume business, with higher net margins, heavily dependent on crop prices. Most companies in this business are small, privately owned companies, with a few large participants. Most suppliers to the U.S. market are located in Colombia and Ecuador. It is estimated that Colombia’s total farm gate crop values exported to the U.S. are about US $570 million a year. It’s total exported flower crop including other markets is about US$ 675 million a year. Ecuador’s is estimated to be about $ 230 million a year. These two countries are the largest exporters of flowers to the U.S.
In Colombia there are an estimated 6,000 hectares under production, that directly employ about 88,000 people. 
Statistics about Colombia’s Flower Industry (Source: Asocolflores):

Exports (US$672.667 millions) 	

Jobs	
Jobs	

	

	

Main export products 	 	

 	

Importing Business

The main point of entry for flowers to the U.S. is Miami Airport, although flowers are imported into other markets directly. It is estimated that two-thirds of the flowers sold in the U.S. come through Miami, with an average of 32,000 boxes arriving daily. 

Yearly dollar values of cut-flowers imported into Miami (according to AFIF) were :

1999 to 2000		$904 million
2000 to 2001		$920 million
2001 to 2002		$958 million
2002 to 2003		$967 million

On an annual basis, the U.S. imported 4.27 billion stems of flowers in 2003 , 3.92 billion in 2002, 3.67 billion in 2001 and 3.21 billion in 2000. Of these, about 1.7 billion (2003), 1.5 billion (2002), 1.2 billion (2001) and 0.97 billion (2000) were roses, and 0.74 billion (2003), 0.73 billion (2002), 0.76 billion (2001) and 0.7 billion (2000) were carnations. 

Wholesale and Distribution Business

It is estimated that the market for wholesale floral products and supplies is approximately $4 billion a year. Although recent statistical data are not easily available or reliable. Wholesalers market and distribute flowers to retail florists and other retailers such as independent supermarkets, etc. Most wholesalers are local to their area and cover an approximate radius of 90 miles. 

Flower Retail Industry

The retail value of the floriculture industry is estimated to be $ 19 billion a year in the United States. Of this approximately $9.5 billion is fresh cut flowers.
Approximately 27.7% of U.S. households purchased flowers at least once during the year 2002, compared with 23.3% in 2001 and 21.1% in 2000. Of these buying households, on average they purchased fresh-cut flowers 3.7 times in 2002, 3.8 in 2001 and 4.0 in 2000. The average dollars spent in fresh-cut flowers by these flower buying households was $62.63 (2002), $70.24 (2001) and $72.45 (2000).
These statistics show that the industry has ample room for consumer penetration. 
In 1993 approximately 70% of dollars spent on fresh flowers was bought at the traditional flower shop, whereas only about 40% of the transactions took place through them.
In 2002 55% of dollars spent on fresh flowers was bought at flower shops. In the same period (1993 to 2002), supermarkets increased their share of dollars spent on fresh flowers from about 19% to about 28% and from 40% of occasions to 50% in 2002.